Malaysia Country Summary
Sanctions
Lower Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Higher Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Malaysia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Malaysia was undertaken in 2018. According to that Evaluation, Malaysia was deemed Compliant for 20 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.
Sanctions
There are no international sanctions currently in force against this country
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 50 |
| World Bank: Control of Corruption Percentile Rank | 62 |
The Malaysian government has taken steps to combat corruption through the establishment of the Malaysian Anti-Corruption Commission and the implementation of the Whistleblower Protection Act, although many businesses lack anti-corruption programs. Despite these efforts, corruption remains prevalent, as evidenced by the arrest of public officials and the controversial reduction of former Prime Minister Najib Razak's graft conviction. Additionally, Malaysia faces significant challenges with human trafficking, organized crime, and financial crimes, while the judiciary and law enforcement agencies struggle with issues of corruption and executive influence.
Economy
Malaysia's economy grew by 3.7 percent in 2023, supported by resilient domestic demand and a recovery in tourism, following a post-COVID rebound in 2022. The government has encouraged foreign direct investment (FDI), with approved investments totaling $69.5 billion and actual foreign investment at $39.7 billion in 2023, bolstered by a skilled workforce and developed infrastructure.
Malaysia's investment climate is favorable for foreign direct investment (FDI), bolstered by a strategic location, a skilled workforce, and a robust manufacturing ecosystem. In 2023, the country approved $69.5 billion in investments, with actual foreign investment reaching $39.7 billion, supported by government incentives aimed at attracting high-value jobs and integrating local companies into global supply chains.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings